A year after the U.S. Department of Justice announced results from its Disruption Week, new details show Coinbase froze more than $3 million in cryptocurrency linked to Southeast Asian fraud rings. The operation, unveiled on June 3, 2025, brought together federal agencies, tech giants, and police forces from five countries in a broad crackdown on cyber-enabled scams.
The Scam Center Strike Force's reach
The Scam Center Strike Force—comprising the FBI, Secret Service, and private firms including Apple, Google, Meta, Microsoft, SpaceX, and TRM Labs—led the effort. Police from Thailand, the United Kingdom, Australia, Canada, and New Zealand also took part. Together they disrupted over 1.4 million social media and email accounts used to peddle fraudulent investment schemes. Thai police arrested seven suspects and opened new cases tied to the same networks.
Coinbase and the blockchain argument
Coinbase froze the $3 million in crypto as part of the enforcement push. In statements at the time, the exchange argued that blockchain technology provides a permanent, traceable record that helps law enforcement follow the money—a point it has repeated in other fraud cases. The move underscores how crypto exchanges are increasingly cooperating with U.S. authorities to choke off illicit flows.
Earlier bust and $700 million restrained
The April before Disruption Week, the Strike Force charged two Chinese nationals accused of running a crypto fraud operation in Burma. Authorities said the men had tried to rebuild the scheme in Cambodia after earlier enforcement actions. In that case, investigators restrained more than $700 million in cryptocurrency tied to scam laundering—highlighting the sheer scale of the problem.
U.S. Attorney Jeanine Pirro said cyber-enabled and crypto investment fraud is devastating Main Street Americans. The operation disrupted networks that had been targeting victims for years, but the fight is far from over.
